CHU KONG SHIPPING Enterprises (Group) Co Ltd (HK: 560), China’s No.1 shipping service provider in the prosperous Pearl River Delta Region, signed a strategic partnership with THT Logistics Singapore to jointly develop a major logistics base to better serve Mainland China and Southeast Asian markets.
Guangzhou Nansha International Logistics Park (“CKS NSI”) is strategically located between the industrially advanced Guangdong Province cities of Guangzhou, Shenzhen and Zhuhai.
Executives from both parties met with investors and the press in Hong Kong to tout the benefits of the landmark deal, with SPRING Singapore leading the large delegation of Singapore-based investors to witness the signing.
SPRING Chief Executive Mr. Png Cheong Boon said the cooperation between a large Chinese state-owned enterprise and a Singapore SME will take advantage of the relative strengths of each participant to bring a world of opportunities for both parties in a very fast-growing part of the world.
"To compete in a global marketplace, logistics SMEs need to forge strong cross-border and cross-sector partnerships in order to provide total supply chain solutions to their global customers.
"SPRING Singapore is pleased to see THT -- a Singapore SME and leader in total supply chain solutions in the Asia Pacific -- forming a strategic partnership with CKS to deepen its capabilities in intra-Asian supply chain solutions."
Mr. Png added that SPRING is sanguine on the full gamut of possibilities inherent in the tieup.
"We are confident that this partnership will further strengthen THT’s capabilities in helping retailers, brand owners and manufacturers to distribute and serve their customers in China and Southeast Asia."
Also speaking to a roomful of Singapore investors and Hong Kong-based reporters in a boardroom high above Hong Kong's Victoria Harbour was Mr. Yang Bangming, Director of Chu Kong Shipping.
"Through the cooperation with THT, we will enjoy synergy of the combined energy and business strengths of both parties. Meanwhile, the increasing operational connection and communication with Singapore’s supply chain solutions provider in Southeast Asia shall accelerate the growth of our logistics platforms in the Pearl River Delta Region, with Guangzhou, Nansha and Hong Kong as hub bases."
He added that CKS saw the sky as the limit in such deals.
"We have great confidence in providing a better service to our clients and hence establishing a brighter future for our business foundation through the extension of our strategic partnership with THT.”
Mr. Guo Binghua is Deputy General Manager of Guangdong Province Navigation Holdings Co Ltd, a stakeholder in CKS.
He said the group was looking forward to the deal to firm up its market position across the entire spectrum of the logistics industry.
"The partnership with THT to develop Guangzhou Nansha International Logistics Park will strengthen our businesses in both the upstream and downstream logistics chain, forming a 'one-stop' logistics supply chain network and expanding our business reach in Southeast Asia."
He added that the establishment of CKS NSI will "foster CKS business strength" in sourcing new business between the Pearl River Delta and Southeast Asia.
The two partners in the landmark cooperation deal -- Chu Kong Shipping and THT Singapore -- could not have picked a more robust place to set up shop.
Chu Kong is a leader in portside logistics operations in the prosperous province of Guangdong -- alone responsible for a quarter of all of China's exports.
"The Nansha Park is expanding rapidly with the times, and plans an additional 50 deepwater berths to keep up with market demand," added Chu Kong's Mr. Yang.
As part of the strategic cooperation, CKS NSI will provide over 450,000 square meters of logistics space for value-added logistics activities.
Guangzhou Nansha International Logistics Park Development Co, Ltd (CKS NSI) is under custody agreement with Chu Kong Shipping Enterprises (Holdings) Co Ltd.
Under the terms of the new partnership, the immediate holding company of CKS NSI will develop the facilities and infrastructure, while THT will provide sales and marketing efforts to promote CKS NSI as the logistics hub of the Pearl Delta River Region for sourcing and distribution.
Chu Kong Shipping Enterprises (Group) Co. Ltd. (HK: 560) is held by Chu Kong Shipping Enterprises (Holdings) Co Ltd and subject to Guangdong Province Navigation Holdings Co Ltd. CKS was established in 1996. Its strategic orientation is ‘based on Hong Kong, backing on the mainland and facing the world’ and is principally engaged in navigation logistics, high-speed waterway passenger transportation and tourist business between Hong Kong and the Pearl River Delta (PRD) as well as several coastal areas. After 15 years' development, CKS has become a large-scale modern logistics enterprise with the support network of port, transport, market and information in the PRD. CKS owns shares of 15 PRD inland barge terminals and operates more than 35 container barge routes, as well as 18 bulk freight routes between HK and PRD inland terminals. CKS is the leader in this market place. CKS is aimed at becoming the ’one-stop’ integrated logistics provider (ILP) for its customers.
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